So what do apartment stats have to do with us investors in single family homes? Well the two although dissimilar in design run parallel in absorption rates and rents, at least somewhat.
A recent article in the Austin American Statesman regarding the sizzling Austin apartment market stated that the occupancy rate was over 93% – in our industry that equates to almost full, 95% being full. The average rent was reported at $1,421 a month for a two bedroom unit representing a 5% increase over the previous year. This is great news for us investors of Austin area residential properties.
What’s fueling this demand for rentals and causing rents to increase so robustly? Job growth. Last year the Austin area saw jobs grow by 3.7 %. Charles Heimsath, a long-time local real estate guru who has been tracking the apartment market for years states that rents should continue their pace for the next 12 – 15 months. Austin has one of the fastest growing economies in the country and the trend is for it to continue have a growing economy for the foreseeable future.
On the flip side there is a lot of apartment construction taking place as these large holders of apartments are no dummies. But the newer apartments are mainly being built further out from what one might call the Austin area.
This is a great time to think about adding to your existing portfolio of rentals as interest rates are still low and rents are high.
Rick Ebert / Austin, Texas / 18 March 19